• WAEMU states target 12.7 trillion CFA francs in 2026 auctions

• 2025 issuance hit record 11.9 trillion as external funding tightened

• Secondary market rebounded, but liquidity remains short-term focused

The regional government securities market of the West African Economic and Monetary Union (WAEMU) is set to reach a new milestone after a record year in 2025. Member states plan to raise around 12.7 trillion CFA francs ($23.20 billion) through auctions in 2026. The outlook was presented by the Director General of UMOA-Titres, Oulimata Ndiaye Diassé, on Tuesday, Jan. 27, as governments continue to face high funding needs.

Financing momentum accelerating

In 2025, government securities issuance totaled nearly 11.9 trillion CFA francs, a record level compared with 8.127 trillion in 2024 and 7.194 trillion in 2023. This confirms the central role of the regional market in government budget financing, at a time when access to external funding has become more constrained for many member states.

The past year was marked by rising volumes and a gradual evolution in the market structure. The average maturity of issued securities stood at around 2.1 years, compared with just over 2 years a year earlier. The share of medium and long-term maturities approached 50% of volumes, reflecting governments’ efforts to reduce refinancing risk while remaining attentive to investors’ liquidity needs.

The market also continued to differentiate between sovereign credit profiles, with financing conditions varying by country. States with stronger fundamentals maintained more moderate borrowing costs, while others had to offer higher yields, particularly on short and intermediate maturities.

A more active, but still concentrated market

Another notable development in 2025 was the strong rebound in the secondary market. After a marked decline in 2023, traded volumes reached a record of more than 5.4 trillion CFA francs. The turnover rate returned to levels close to those observed before monetary tightening, pointing to renewed arbitrage activity. Liquidity, however, remains concentrated on short and intermediate maturities, as long-term securities are still rarely traded.

The market continues to be supported mainly by domestic investors, including banks, insurance companies, and regional institutional investors. According to market participants, broadening the investor base and attracting more long-term savings have become key challenges in supporting the continued growth of issuance.

Against this backdrop, regional institutions, including the BCEAO and UMOA-Titres, have stressed the need to strengthen transparency, market discipline, and the functioning of the secondary market. These conditions will be key to meeting the 12.7 trillion CFA franc target set by WAEMU states for 2026, following an already record-breaking year in 2025.

Fiacre E. Kakpo